Humber/Ontario Real Estate Course 3 Exam Practice

Which is a condition that could arise when a property is sold during the holdover period after initial listing expires?

1. Original agreements always supersede any new agreements under any condition.

2. Seller pays no fees if sold by another agent during holdover.

3. The seller might end up paying multiple fees if clauses aren't adjusted properly.

4. No fees apply if the property is listed again post expiry of the holdover period.

5. The seller remains wholly responsible for all previous and new agent fees.

6. The seller can negotiate terms post-sale to avoid additional fees.

The correct answer is: The seller might end up paying multiple fees if clauses aren't adjusted properly.

When a property is sold during the holdover period after the initial listing has expired, the situation can lead to complications regarding fees associated with real estate agents. The correct response highlights that if the conditions of the contract are not carefully reviewed and adjusted, the seller could indeed find themselves liable for multiple commissions to different agents. This scenario often arises because, during the holdover period, the original agent retains the right to a commission for sales they initiated or had a direct impact on, even if the sale occurs after the listing has technically expired. In practice, this means that should the seller sell the property to a buyer who was introduced by the original agent during the listing period, the seller may still owe that agent a commission unless the terms of the agreement have been specifically addressed. Thus, not adjusting the clauses properly can lead to a situation where the seller inadvertently becomes responsible for compensating more than one agent for the same transaction, hence the possibility of multiple fees arising. The other options misrepresent the relationships between agents and sellers during the holdover period or misunderstand the nuances of commission arrangements. For instance, it is not the case that original agreements always supersede new agreements without regard to their specific terms; nuances around the timing and conditions of sales are critical.